QCR Holdings Inc. (NASDAQ:QCRH) Q3 2020 Earnings Conference Call - Final Transcript

Oct 28, 2020 • 11:00 am ET


QCR Holdings Inc. (NASDAQ:QCRH) Q3 2020 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the QCR Holdings, Inc. Earnings Conference Call for the Third Quarter of 2020. Yesterday, after market close, the company distributed its third quarter earnings press release. If there is anyone on the call who has not received a copy, you may access it on the company's website, www.qcrh.com. In addition, the company has included a supplemental slide presentation with COVID-19-related disclosures that you can refer to during the call. You can also access these slides on the website. With us today from management are Larry Helling, CEO; and Todd Gipple, President, COO and CFO. Management will provide a brief summary of the financial results, and then we will open up the call to questions from analysts. Before we begin, I would like to remind everyone that some of the information management will be providing today falls under the guidelines of forward-looking statements as defined by the Securities and Exchange Commission. As part of these guidelines, any statements made during this call concerning the company's hopes, beliefs, expectations and predictions of the future are forward-looking statements, and actual results could differ materially from those projected. Additional information on these factors is included in the company's SEC filings, which are available on the company's website. Additionally, management may refer to non-GAAP measures, which are intended to supplement, but not substitute for the most directly comparable GAAP measures. The press release available on the website contains the financial and other quantitative information to be discussed today as well as the reconciliation of the GAAP to non-GAAP measures. As a reminder, this conference is being recorded and will be available for replay through November 11, 2020, starting this afternoon, approximately one hour after the completion of this call. It will also be accessible on the company's website. At this time, I will now turn the call over to Mr. Larry Helling at QCR Holdings.

Larry J. Helling

Thank you, operator. Welcome, ladies and gentlemen, and thank you for taking time to join us today. I will start the call with a brief discussion regarding our third quarter performance. Todd will follow with additional details on our financial results. As the pandemic continues to impact our country and the economy, we hope that everyone is staying healthy and safe. Our top priority remains the health of our employees and clients, and I am proud of our entire team for continuing to do what it takes to support each other, our clients and our communities in times of need. We are very pleased to report a record quarter of net income, preprovision, pretax adjusted net income and noninterest income driven by continued strong loan growth, record fee income and an expanded net interest margin. Our net income and diluted EPS increased 26% from the second quarter, while our tangible book value grew 4% on a linked-quarter basis and 14% year-over-year. We achieved these record results despite recording another quarter of elevated provision for loan losses and continuing to build our reserves due to the ongoing economic